NIFTY REBOUNDS FROM 34-DMA SUPPORT; 11850 IS THE IMMEDIATE HURDLE

 

NIFTY REBOUNDS FROM 34-DMA SUPPORT; 11850 IS THE IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices gained 0.5%-1.6% on the back of better-than-expected U.S. gross domestic product and jobless claim data.

 

US economy grew at a record 33.1% annualized rate in the third quarter, exceeding the 32% estimate. Weekly jobless claims stood at 751000, declining for a second straight week and touching its lowest level since March.

 

Apple fell more than 4% in extended trading after the company reported a 16% decline in iPhone sales and failed to offer any guidance for the quarter ahead. Amazon dipped 1.5% even after reporting blowout results with a big beat on the top line. Twitter dropped more than 14% after reporting user growth that fell short of expectations. On the other hand, Google parent Alphabet soared more than 7% after posting quarterly results that topped expectations.

 

Moderna said it is prepping for the global launch of its potential coronavirus vaccine.

 

Brent crude settled 3.8% lower at $37.65 per barrel while WTI crude futures fell 3.3% to settle at $36.17 per barrel.

 

In Europe, FTSE and CAC were little changed while DAX rose 0.3%.  ECB held interest rates steady and kept its broader monetary policy environment unchanged, but suggested that additional policy action could come as soon as December. Euro zone economic sentiment for October came in at 90.6, unchanged from the previous month but slightly exceeding expectations.

 

AT HOME

 

Benchmark indices ended lower by half a percent after a choppy expiry session, extending the losing streak to second straight day. Sensex settled at 39749, down 173 points while Nifty lost 59 points to finish at 11670. BSE mid-cap index ended flat while small-cap index fell 0.6%. BSE Capital Goods and Industrials indices fell 2.1% and 1.3% respectively, becoming top losers among the sectoral indices while Energy index was the top gainer, up 0.6%, followed by 0.2% higher IT and Teck indices.

 

FIIs net sold stocks and index futures worth Rs 421 cr and 1659 cr respectively but net bought stock futures worth Rs 1468 cr. DIIs were net sellers to the tune of Rs 253 cr.

 

Rupee depreciated 22 paise to close at 74.10/$.

For the October derivative series, Sensex and Nifty gained 8.7% and 8% respectively.

Output of eight core industries contracted 0.8% in September, much better than the revised contraction of 7.3% seen in August.

 

OUTLOOK

 

Today morning, Shanghai is little changed while Hang Seng and Nikkei are down 0.3% and 0.6% respectively. SGX Nifty is suggesting around 30 points lower start for our market.

 

In yesterday's report we had said that 11661, the bottom made on 15th October, continued to be immediate support, upon breach of which, 34-DMA, placed around 11590, would be the important support to eye.

 

Nifty opened below 11661 support and touched a low of 11606, from where it rebounded to end at 11670.

 

11590, where 34-DMA is placed, continues to be important immediate support to eye. If this level breaks, next meaningful support will come only at 11407, which is the 50% retracement level of the entire 10790-12025 upmove.

 

11850 is the immediate hurdle on the hourly chart, above which 11929, the top made on Wednesday, would be the next resistance.

 

Reliance Industries, UPL, IOC and Indusind Bank will report their quarterly earnings today.